Two years into Brian Niccol’s tenure, his plan to make Starbucks more of a place to sit and less of a pickup counter is showing up in the numbers. Global comparable sales rose 7.9% in the latest quarter, the fourth straight quarter of growth, and the share price is up about 30% since he arrived in September 2024.
What Starbucks changed
“Back to Starbucks”, announced on Niccol’s second day, reversed years of optimising for speed and mobile orders. The company has refurbished 1,000 stores with more seating and power outlets, brought back handwritten notes on cups and free refills, dropped the surcharge on alternative milks and spent more than $500 million on extra staff at peak hours. It also cut back the menu and customisation options so baristas can keep up.
The savings come from elsewhere. Starbucks closed hundreds of underperforming stores, lowered its global target to about 440 net new openings, eliminated around 2,000 corporate jobs and aims to save $2 billion by 2028. Marketing spend rose 46% to $869 million in 2025.
The margin trade-off
Operating margin now sits just above 11%, compared with roughly 16% in 2023. Starbucks is giving up profitability to defend its position against cheaper, faster rivals such as Dutch Bros, 7 Brew and Blank Street. Niccol argues they cannot copy the model: “I’m not sure it’s in their brand promise to do it. It is in ours.”
Marketing has moved toward culture and fandom under chief brand officer Tressie Lieberman, who worked with Niccol at Taco Bell and Chipotle. A three-day return of the Unicorn Frappuccino sold more than two million drinks and set a Saturday sales record, and the app now features fan-created drinks trending on social media.
What comes next
Niccol has told investors to expect at least 3% annual comparable sales growth over the next three years, and admits progress on digital and the menu has been slower than he wanted. The harder test is whether sales keep growing once the refurbished stores lose their novelty and investors start asking for the old margins back.
